RIYADH, 30 July 2004 — Saudi stocks extended more than a month of gains in the week to Thursday, buoyed by strong first-half results of blue-chip firms and record oil prices.
The all-share index, climbing for the sixth week, closed at 6,181.18 points, up 2.3 percent from last week’s 6,041.70.
“In the current positive climate encompassing the Saudi stock market coupled with high level of oil prices, we expect the bullish trend to continue for the time being,” Bakheet Financial Advisors said.
The index of the largest Arab bourse, which hit a record 6,455 points in May, is up 39.3 percent this year after rising 76 percent in 2003. Turnover increased to SR33.96 billion ($9.1 billion), from SR25.56 billion a week earlier.
Saudi Electricity Co., the most active share with 10.3 percent of turnover, added 2.4 percent to SR137.75. It had posted first-half net profit of SR56.7 million, after losses of SR334.9 million a year earlier.
Saudi Basic Industries Corp., the Middle East’s biggest petrochemicals producer, climbed 2.8 percent to SR530.25. It had reported 67 percent higher half-year net profits of SR5.34 billion riyals.
Advancers outnumbered decliners 66-5, and one share was unchanged.
Investor sentiment was supported by record peaks hit by crude oil prices in the week, traders said. Strong oil revenues have been a boon for the economy of the world’s biggest crude exporter, helping corporate earnings and boosting investor liquidity.